1. Field of the Invention
The present invention is in the technical field of payment systems. More particularly, the preferred embodiments of the present invention relate generally to payment systems which allow a payer to pay an absent payee. More particularly, the preferred embodiments of the present invention relate generally to payment systems which allow payers who are unable to obtain bank accounts, or use other modern payment means, such as the Automated Teller Machine system, credit card processing systems, or the like, to pay absent payees. Furthermore, the preferred embodiments of the present invention relate generally to payment systems which also provide information to users, such as marketing material, promotional material, directions, account history, historical data, instructional information, useful facts and/or helpful information, and gather information for controllers of the system for management or accounting purposes. Additionally, the present invention relates generally to a method of paying absent payees.
2. Description of the Related Art
Over time, the number of means by which a payment can be made to a payee has increased. Submission of cash currency has been an option since the onset of financial systems; however, transporting cash currency is fraught with the risk of loss, damage and theft, and physically securing cash, especially large quantities of it, are difficult and problematic. Negotiable instruments, such as checks and promissory notes, evolved to ease the transfer of funds, especially over long distances.
Many of the recent innovations in payment methods allow for payers to pay in instances in which the payee is not present. Payments may be submitted to an absent payee in a variety of ways. Payments may be submitted electronically using an electronic funds transfer between bank accounts or a credit card processing system. Payers who possess bank accounts may write checks and mail them to the payee or deliver them to the payee. Payers may also obtain a cashier's check from a third party, usually for a fee. Payers may use web-enabled software to submit a payment over the internet; however, many people do not own a computer or have easy access to one. Cash may be also be submitted and collected later by the payee; however, cash submissions to absent payees are problematic because cash may not be mailed and may not be easily secured if given to an intermediary.
Not every member of society has easy access to modern payment means. Some people may not be able to obtain bank accounts because they cannot maintain a minimum balance or have other barriers which prevent them from obtaining one. A minimum balance may not be maintainable because of low income or a high degree of debt. Improper identification may also hamper the ability to obtain a bank account. People who have difficulty in establishing bank accounts may not be able to open even temporary accounts which allow cash payments to be paid over an ATM system. People living in rural areas may have limited physical access to banks simply because they are scarce in those areas. Some banks limit the ability to receive cashier's checks to those who possess accounts.
Moreover, some people also have difficulty obtaining credit cards. They may not be able to qualify for a credit card because of low income, high debt levels, poor credit scores, a lack of credit, or identification problems. Some users of credit cards simply cannot afford the fees. Even credit fraud on the part of others can affect the ability to obtain credit.
People who are not able to obtain bank accounts or credit may be able to find a bank to issue a cashier's check, but they must travel to that bank and pay a fee for the cashier's check. People with low income may not have the ability to travel easily or may not be able to afford to travel. Additionally, any additional fees would be a burden on their already low income.
Cash may also be converted into a money order; however, a third party must be involved to issue the money order, and these third parties almost always charge fees. As with the cashier's check, the payer who wishes to obtain a money order must travel to an establishment that provides money order service and incur travel expenses that a low income person may not be able to afford. The low income person may also lack the ability to travel. Money orders may only be issued for limited amounts, and these amounts may be less than the payment which the payer needs to submit.
Businesses which cater to low income customers, such as low income housing, temporary residences, rental services, rent-to-own services, pay day loan services, pawn shops or the like, are often faced with difficulty in obtaining payment from their customers. Collecting payment at all may be difficult because the payer lacks the necessary funds. Low income customers may submit a payment using multiple payment means, such as a combination of payment types. Payment portions may be submitted at different times because low income customers may not have the entire payment when it is due or must pay portions in advance. Often, low income customers submit payments in cash only and in low denomination bills, which increase the physical volume of cash which must be collected by a payee. Collecting such payments exposes the payee to danger while collecting the payment and makes the payee a potential target for theft or other crimes. Furthermore, businesses which cater to low income customers encounter difficulties in maintaining accurate records. The combination of payment types or multiple payment portions can make record-keeping difficult for the payee. Merely accepting cash payments increases the difficulty of tracking from whom the payments were made and for which payment account. Cash payments may also cause disputes if the records do not match the cash payment made.